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The Beal Business Advisor

September 2013

Contact Number:  204-478-7266
In This Issue

Buying a Business - Real Estate  

Selling a Business - How Picking A Successor Can Maximize Business Value 

Question of the Month:  I Have Been Experiencing Losses Due to Recessionary Factors, How Can I Reduce Expenses to Maximize the Botom Line Until My Situation Rebounds?  

Current Businesses for Sale

Upcoming Seminars     

Buying a Business  -  Real Estate

Last month we discussed inventory, this month we want to discuss real estate. 

 

It is typically clear if real estate is included in a business sale or not. When it is, you want to make sure you understand:

  • What is owned - address, legal identification
  • Condition, age, and fair market value. Is an appraisal necessary?

When real estate is not included, you will probably be taking over a lease or signing a new one. Some issues to consider at that point include:

  • What is the remaining term? Is it assignable?
  • Are there any option periods?
  • What other fees (such as common area costs, taxes, snow removal, etc.) are payable?
  • Who is responsible for the roof and HVAC?

Next month we will discuss machinery and equipment. 

 

In the meantime, if you would like more information on buying a business, contact us at 204-478-7266x110.

 

 

Selling a Business -  How Picking a Successor Can Maximize Business Value
This month we will focus on how picking a successor can maximize business value.

Succession planning is all about two things: succeeding and successor. It is important to pick the right successor in order to ensure long-term success. The stats on family businesses are dismal - only 30% of businesses make it to the second generation, and only 10% survive to the third. The first question to ask is if your successor is going to be one of your children. Don't assume either that they want your business or that they can run it as well as you can. It is not an admission of failure to sell the business outside the family.  

 

Key attributes to look for in a successor are: interest, competence, adaptability. Make sure your successor is interested in running the company. Your children may not be, but they never told you. Ensure they have the competence. (It may be tough to admit that they may not be able to do it.) And, perhaps most important, make sure they are adaptable. The world is changing at an incredible pace. Businesses must change to evolve. Examine the environment, and the environment the business will be evolving into. Eaton's was strong when department stores ruled the world, but failed to adapt as the face of retail changed. Don't just assume it will all work out for the best!

 

If you would like more information on selling or valuing a business, contact us at 204-478-7266 x110.

 

Current Businesses for Sale

  

Weight Loss Clinic 

 

Bridal Shop 

 

Metal Fabrication Business 

 

Successful Restaurant Location 

 

Print and Online Publication - Business Opportunity

 

Employment Service - Franchise Opportunity 

 

Small Town Grocery Store/Meat Shop

 

Seasonal Contractor 

 

Frozen Food Distributor  

 

Hunting Outfitter 

 

Automotive Repair and Power Product Dealership 

 

Specialty Building Product Retailer

 

Online Electronic Store - Conditionally Sold 

 

Fast Food Sandwich Franchise

 

Breakfast & Lunch Restaurant  

 
 Construction and Renovation Company  

 

Trucking Company - NW Ontario  

 

Rural Restaurant and Convenience Store  

 

Winnipeg Convenience Store   

 

High Volume Retail Chain  

 

Thompson Hotel and Restaurant    

 

Prepared Fine Foods - Catering, Wholesale, and Retail 

 

Addiction Treatment Center

 

   Marine Dealership and Services - Saskatchewan  

   

 

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To review any of these business profiles, please click  here .

 

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We do not advertise all of our listings to the public.

If you have a specific type of business in mind,

please call 204-478-7266 x110 to inquire!

 

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Upcoming Seminars
Introduction to Income Statements

October 2, 2013
10:00 a.m. to 12:00 p.m.
Canada/Manitoba Business Service Centre
Room 250-240 Graham Avenue
Call 204-984-2272 to Register


Introduction to Balance Sheets

October 8, 2013
10:00 a.m. to 12:00 p.m.
Canada/Manitoba Business Service Centre
Room 250-240 Graham Avenue
Call 204-984-2272 to Register

Learn to be Profitable!  Pricing & Costing

October 9, 2013
9:00 a.m. to 12:00 p.m.
Canada/Manitoba Business Service Centre
Room 250-240 Graham Avenue
Call 204-984-2272 to Register 
 
How to Buy a Business

October 21, 2013
1:00 p.m. to 3:00 p.m.
Canada/Manitoba Business Service Centre
Room 250-240 Graham Avenue
Call 204-984-2272 to Register

Cash Flow is King! Cash Flow & Financial Ratios
November 14, 2013
1:00 p.m. to 3:00 p.m.
Canada/Manitoba Business Service Centre
Room 250-240 Graham Avenue
Call 204-984-2272 to Register


 



Quick Links

Beal Consultants Website  

 

Quote of the Month

 "Bitter experience has taught us how fundamental our values are and how great the mission they represent"  

 

  Jan Peter Balkenende           

Question of the Month: I Have Been Experiencing Losses Due to Recessionary Factors, How Can I Reduce Expenses to Maximize the Bottom Line Until My Situation Rebounds?

 

Declining revenues brought on by the 2009 recession have put additional pressure on small business cash flow, forcing many firms to make tough decisions around cutbacks. Fortunately, there are numerous ways that businesses of all sizes and types can reduce their expenses and ultimately improve their bottom line.

 

 

In today's extremely tight economic climate, every business owner must keep a watchful eye on their business expenses.  The following are just a few of the items that you should consider when examining your business expenses:

 

  • Suppliers - whether you rely on just one supplier or many, always check your invoices.  Suppliers sometimes mistakenly overcharge you; sometimes they send more product than you need.  Clarify their policy on non-conforming parts or defects - you should not be paying for them.
  • Bill payments - make it a habit to pay your bills on time. You will avoid late fees and improve your credit rating.  Ask your supplier/service provider if they offer discounts if you pay your bill before the due date.
  • Communications - talk to your phone and internet service providers.  Often, packages can be bundled together for a discount.  Always look for extra features (call waiting, message forwarding, etc.).
  • Office environment - monitor your office supplies...pads of sticky notes, pens, and scotch tape all add up.  Don't let employees take these items home.  Also, turn computer and lights off at night to save energy.  If you are using a cleaning service, evaluate the frequency of visits and if they match your needs.
  • Advertising - monitor your advertising costs and which type of advertising draws new customers. Eliminate or replace ineffective uses of your advertising dollars.
  • Accounting - finding a good accountant who understands your company and personal tax situation will ultimately save you money.
  • Shipping - try to avoid overnight deliveries if possible.  Use e-mails and faxes wherever acceptable.  Postage adds up!
  • Credit cards - if you accept credit card payments, shop around for the lowest rate merchant account.  There are many options available.

 

This is obviously a list that can go on and on.  Use your imagination!  Expenses can be lowered enough to actually see the difference.  Every little bit helps.

 

 

For more information, contact us at 204-478-7266x110. 

 
About Us...

 

Beal Business Growth Consultants, Inc. helps owners of small and medium-sized businesses to buy, sell, value, and grow their businesses.  We also work with individuals who are looking to buy or start a business or franchise.

 

Call us at (204) 478-7266 x110 for a free, initial 30-minute consultation to explore how we can help you buy, sell, value or improve your business.  .

 

Legal

Copyright 2013 by Steven Beal, Beal Business Growth Consultants, Inc.  The information herein is not complete and is intended only to provide guidelines to supplement counsel the reader receives from a qualified professional.  It is distributed with the understanding that the author is not rendering legal, accounting or tax advice or opinions on specific facts or matters, and accordingly, assumes no liability in connection with its use.

 

 

Published by Beal Business Growth Consultants, Inc.   

 

www.bealconsultants.ca